CORPORATIONS ACT 2001

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL  

PART 2J.3 - FINANCIAL ASSISTANCE  

SECTION 260D   CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 260A  

260D(1)   [ Effect of contravention]  

If a company provides financial assistance in contravention of section 260A:


(a) the contravention does not affect the validity of the financial assistance or of any contract or transaction connected with it; and


(b) the company is not guilty of an offence.

260D(2)   [ Person involved in contravention]  

Any person who is involved in a company's contravention of section 260A contravenes this subsection.

Note 1: Subsection (2) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved .

260D(3)   [ Offence]  

A person commits an offence if they are involved in a company's contravention of section 260A and the involvement is dishonest.


 

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